Naira Appreciates By 7.2% Against The Dollar On The Official Market.

Naira Appreciates By 7.2% Against The Dollar after the Sallah holidays…

The value of the naira rose a lot on Friday, selling at N1,142.38 to the dollar on the official market, according to Punch news.

The official trade platform of the FMDQ Exchange, which runs the Nigerian Autonomous Foreign Exchange Market, showed that the Naira rose by N88.23.

The naira appreciated by 7.16 percent from the last trade day, April 8, when the value of the naira was N1,230.61 to the dollar before the Sallah holiday.

The overall daily turnover rose from $125.55 million on Monday to $281.34 million on Friday, according to the News Agency of Nigeria on Saturday.

The value of the naira against the greenback (US dollar) ranged from N1,265 to N1,100, as seen in the investors and exporters (I&E) window.

Recently, the Nigerian naira has been getting stronger against the US dollar for a number of reasons:

Central Bank Intervention

The Central Bank of Nigeria (CBN) has taken steps to make the foreign exchange market more open and stop people from speculating.

This means taking action against banks that are hoarding foreign currency and getting rid of a stack of requests for foreign exchange.

Reduced Speculation

The CBN’s moves have made people less worried about the naira falling in value, which has caused currency speculators to sell their dollars.

The price decreased compared to the naira because there were more dollars on the market.

The administration of President Bola Tinubu has been holding both fiscal and monetary policies accountable for the consistent appreciation of the Naira, and economic experts have continued to praise both of these policies.

There was a total of 600 basis points of interest rate rises applied by the Central Bank of Nigeria (CBN) during its policy meetings that took place in February and March.

Consequently, this assisted in addressing the issue of dollar scarcity, lowering volatility, and reducing dependency on parallel markets.

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